Residential electricity tariff reduced by 13%

Government has announced some reforms in the energy sector that will see electricity tariff reduced by 13 percent for residential and non-residential.

The Finance Minister, Ken Ofori-Atta, who announced this in Parliament on Wednesday, said special load tariff for low voltage, medium voltage, and high voltage would also be reduced by 13, 11, and 14 percent respectively.

The high voltage mines would also enjoy as high as 21 percent tariff reduction, the minister said in the budget statement and financial policy of government ending 31st December 2018.

He said the Public Utility Regulatory Commission (PURC) would be recommended to implement the reductions.

“Government in 2018, will work towards keeping the lights on at affordable rates to consumers, particularly industries and small businesses through reform and policy interventions over a two-year period,” he assured.

According to Mr. Ofori-Atta, this will give relief to the poor whose individual consumption falls in the subsidised life-line category but who live in a compound house.

He also revealed that the “existing 4-tier tariff classification of residential consumers will be collapsed into Lifeline and Non-Lifeline”.

Ken ofori-Atta said a total of 445MW power capacity was added to the country’s installed generation capacity, bringing the total installed capacity to 4,577MW in 2017.

In 2018, government will increase the installed generation capacity by about 487MW (Cenpower; 340MW, Early Power Phase 1; 147MW) to meet the growing demand of electricity, he said.

He also announced that in 2018, 50,000 solar lanterns will be procured for distribution to poor off-grid rural households. In addition, Government will embark on MDAs Solar Rooftop Programme to reduce expenditure on utilities, the Finance Minister stated.

He also announced that Cabinet has approved a new National LPG Promotion Policy to abolish the current LPG Marketing model and replace it with the Cylinder Recirculating market model.

This will be implemented with the construction and operation of some LPG Bottling Plants and other infrastructure required for the roll-out of the new model in 2018.”

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